FHA Loan Calculator: Know Your FHA Mortgage Payment

Use our free calculator to check the FHA payment on your new home purchase

How Does LendingTree Get Paid?
LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
Privacy Secured  |  Advertising Disclosures
 
loading image

How to use our FHA loan calculator

Our FHA loan calculator provides a quick and easy way to estimate your monthly FHA mortgage payment. Just plug in the following seven pieces of information:

  1. Property location. FHA loan limits vary by county. To get your most accurate estimate, enter the ZIP code for the neighborhood you’d like to buy a home in.
  2. Home price. If you’re under contract on a specific house, enter the price here. If you haven’t settled on a home yet, provide an estimate.
  3. Down payment. The calculator automatically inputs a 3.5% down payment, which is the minimum required for an FHA loan. You can change the dollar amount or percentage field if you plan to put down more.
  4. Loan term. Choose a 30-year fixed-rate mortgage for the lowest payment, or a 15-year fixed-rate mortgage to pay off your mortgage faster.
  5. Mortgage rate. Check out average FHA loan rates or enter your best quoted-rate if you’ve already shopped around. Keep in mind: Rates change daily, so the rate you check today may go up or down tomorrow, leading to a jump or drop in your monthly payment.
  6. Property taxes. This field is pre-filled based on a tax rate worth 1.20% of your home’s price, but you can get a more accurate payment estimate using the actual tax rate for your area. Visit your local tax assessor’s website to look for your current rate.
  7. Homeowners insurance. Get a homeowners insurance estimate for a ballpark on your annual premium. The calculator automatically provides an $800 estimate per year.
Related article  Read more about how to choose between a 15- vs. 30-year mortgage.

This year's best FHA mortgage lenders

Read more  Learn more about how we chose our best FHA lenders.

How to get an FHA loan

Follow the five steps below to get an FHA loan:

  1. Shop with at least three lenders. Gather loan estimates from at least three lenders and compare costs. Ask the lenders if they are FHA-approved — not all lenders are.
  2. Fill out an FHA loan application. You’ll need basic income, employment and asset information, as well as a rough idea of your monthly debt payments.
  3. Check your credit scores. The lender will pull a credit report to confirm you meet the minimum score requirements.
  4. Provide financial documents. A current month’s pay stubs, two years’ worth of W-2s and two months’ worth of bank statements should get you off to a good start.
  5. Pay for a home appraisal. FHA guidelines require an FHA appraisal to confirm the home’s value and that the property meets the FHA’s property standards.
loading image

Which costs are part of a monthly FHA mortgage payment?

The “monthly payment breakdown” itemizes your total PITI (principal, interest, taxes and insurance) payment and includes:

Principal and interest

This part of your monthly payment varies based on your FHA base loan amount, interest rate and loan term. For a fixed-rate loan, the payment doesn’t change, but each month you pay more principal and less interest until you pay off the balance. This process is known as amortization.

Property taxes

FHA loans require you to pay a portion of your property taxes as part of your monthly payment. The lender divides your annual tax bill into 12 monthly installments and saves them in an escrow account until they’re due.

Insurance

Insurance Home Insurance

Homeowners insurance pays for losses from unexpected damage to your home from a fire, theft or other covered event. Like your property taxes, the premium is divided by 12 and becomes part of your monthly mortgage payment. The lender pays the annual premium through your escrow account.

Insurance Monthly FHA Mortgage Insurance Premium

The annual mortgage insurance premium (MIP) is one of two types of FHA mortgage insurance you’re required to pay. The fee ranges from 0.15% to 0.75% of your loan amount, depending on the loan term, loan amount and down payment. MIP is charged annually, divided by 12 and added to your monthly payment.

Why should I use an FHA loan calculator?

To help understand FHA mortgage insurance costs

There are more costs built into an FHA mortgage loan than other types of mortgage loans. You’ll also notice the calculator shows your FHA base loan amount, upfront MIP and total loan amount. Here’s why these items are important:

  • FHA base loan amount. Your FHA base loan amount is used to calculate your principal and interest payments. Changes to your rate or term will have a direct effect on this part of your monthly payment breakdown.
  • Upfront MIP. Besides the annual MIP mentioned above, you’ll owe an upfront mortgage insurance premium (you may see this on your loan estimate as UFMIP). This fee is 1.75% of your loan amount regardless of your down payment. It is usually added to your base loan amount.
  • Total loan amount. Lenders add your FHA base loan amount to your upfront MIP to calculate your total loan amount. You may be eligible for a partial refund of the upfront MIP if you refinance into a new FHA loan within a set time period.
Interested in refinancing to a new FHA loan?
Calculator Use our refinance calculator to estimate your monthly payment today.

 

To decide if you can afford an FHA mortgage payment

One drawback to FHA loans is you pay FHA mortgage insurance regardless of your down payment percentage. That may make the monthly payment too expensive. However, there are a few FHA affordability benefits worth knowing:

  • FHA mortgage insurance premiums aren’t based on credit score. Your payment may be much more affordable than a conventional loan that requires private mortgage insurance (PMI). That’s because PMI rates are based on your credit score and down payment, while your score has no effect on FHA mortgage insurance premiums.
  • FHA interest rates are usually lower than conventional rates. Mortgage rates on FHA loans are generally lower than conventional loan rates. That’s because your mortgage insurance premiums cover the risk lenders take on by setting lenient credit score and down payment requirements.
loading image

How can you lower your FHA mortgage payment?

  1. Make a bigger down payment. The annual MIP premium is cheaper with a larger down payment, since you’re borrowing less.
  2. Boost your credit scores. FHA lenders offer rates based on your credit score, and a higher score gets you a lower rate and mortgage payment. Pay your bills on time, keep your credit card balances low and avoid opening a lot of new credit accounts at once.
  3. Choose a streamline refinance if rates drop. The FHA streamline refinance allows you to lower your FHA loan rate without a home appraisal or proof of income. If rates fall, consider refinancing your mortgage to shrink your monthly payment.

loading image

Frequently asked questions